Facebook's market capitalisation topped 200 billion dollars for 22nd place in global rankings

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[Abstract] "If the mobile advertising business can continue to grow, their share price will continue to be good." ”

Tencent Technology News September 9, Facebook market value exceeded 200 billion U.S. dollars, become one of the largest companies in the world. Investors want Facebook to take full advantage of mobile advertising opportunities to grow further.

Facebook's shares rose 0.8% in Monday, at $77.89, and the company's market value rose to $201.6 billion. This makes Facebook the world's 22nd-largest company, though it lags behind the US's biggest operator, Verizon, but has overtaken Toyota Motor Corp.

Facebook's share price has risen 9.3% since its second-quarter earnings July 23 this year, while the S & P 500 index has risen only 0.7% per cent. In the second quarter of this year, the company's revenues amounted to $2.91 billion trillion, up 61% per cent year-on-year, with mobile operations representing 62% of advertising sales, up from 59% in the previous quarter, according to Facebook earnings.

The rise in share prices this time is reminiscent of the early days of Facebook's IPO in May 2012, when the company's share price plunged because of a lack of mobile revenue. According to the Bloomberg billionaire index, Facebook founder and CEO Mark Zuckerberg is ranked 13th in the global Rich List, Zuckerberg. He took the ads on smartphones and tablets as a core Facebook business, and built it as a base for mobile networks that spread the company's advertising business across the web and mobile devices.

"The recent rise in stock prices stems from their latest performance reports, which point to higher demand and sales for mobile advertising," he said. "If mobile advertising continues to grow, their share price will continue to be good," said Jeffrey Sika Jeffrey Sica, president of Sica Vestra Management, managing the 1.5 billion dollar asset. ”

Zuckerberg's wealth

The rise in Facebook's share price has also boosted Zuckerberg's personal fortunes to $34.2 billion trillion. Zuckerberg created Facebook in 2004 and is now 30 years old. According to the regulatory document filed in March this year, Zuckerberg's Facebook shares give him 61.6% of the vote.

Facebook's share price has risen 81% per cent in 12 months since September 5 last year, while the S & P 500 index has risen 21% per cent. Facebook is now worth more than the old technology giants such as IBM and Oracle, but the company's expected revenue this year is 12.2 billion dollars, well below the older and more mature technology companies. Analysts are bullish on Facebook's future, and according to a Bloomberg survey, 43 out of 53 analysts have given Facebook stock-buying ratings.

Higher advertising prices

David Wehner, Facebook's chief financial officer, said in July that Facebook's performance in the last quarter benefited from brands and marketers paying higher prices for higher-quality advertising David Venas. Facebook's average advertising price rose by more than a year in the second quarter, despite a 25% drop in the number of advertising impressions in the same period.

In 2013, Facebook accounted for 5.8% of global digital advertising revenues, up from 4.1% in 2012, according to emarketer, a market research agency. Last year, global digital advertising spending of 120 billion U.S. dollars, an increase of 14.8%, this year is expected to increase to 140 billion U.S. dollars.

To capture this growth, Facebook is making a big effort to improve its advertising service, which has not only launched a video-advertising product that competes with television for advertising budgets, but has also applied advertising networks to other developers, and acquired the industry-leading network video advertising platform LiveRail this July.

Privacy criticism

Last month, Facebook unveiled a tool that allows advertisers to know when an ad will be viewed and when to bring the first deal, through user tracking among different devices. But the service has been criticized by privacy activists, which poses a potential barrier to Facebook's future development.

In this case, Zuckerberg has made a number of billions of dollar big acquisitions, hoping to diversify the company's business. This February, Facebook announced a $19 billion trillion WhatsApp for instant messaging applications. This July, Facebook completed a 2 billion dollar deal to buy virtual reality company Oculus VR. Zuckerberg believes the virtual reality Oculus VR production will become the next major communications device after the mobile phone. (Beckham)